Civeo Corporation, the man camp service provider that closed its Oklahoma operations in the middle of the pandemic and oil crisis reported a first quarter 2020 loss of $146.5 million or 87 cents a diluted share.
The Houston-based company said its first quarter revenues were $138.8 million and operating cash flow amounted to $20.8 million. The net loss included the impact of nearly $144.1 million in non-cash goodwill and asset impairments.
The loss report came after Civeo, with a closed office in Yukon, Oklahoma had cut up to 20% in salary and compensation for its executive leadership team and had reduced the number of employees systemwide by 25% last month. It also slashed its 2020 capital spending by nearly 25%.
“We are currently operating in a challenging environment, and are working hard to navigate the COVID-19 pandemic and historic global oil supply/demand imbalance,” stated Bradley J. Dodson, Civeo’s President and Chief Executive Officer.
“We expect that the remainder of 2020 will bring reduced EBITDA; however, we believe the Company’s diversified geographic and commodity end market footprint, coupled with our relentless focus on positive free cash flow generation, will help us manage through this period of uncertainty.”
The first quarter of 2020 outperformed the first quarter of 2019 due to higher occupancy in both Canada and Australia coupled with the contributions from Action Catering, which was acquired in July 2019.
By comparison, in the first quarter of 2019, Civeo generated revenues of $108.6 million and reported a net loss of $17.5 million, or $0.11 per diluted share. During the first quarter of 2019, Civeo generated operating cash flow of $6.3 million, Adjusted EBITDA of $15.9 million and free cash flow of $1.1 million.
The company’s U.S. segment generated revenues of $10.3 million, operating loss of $14.1 million and Adjusted EBITDA of $0.4 million in the first quarter of 2020, compared to revenues of $13.4 million, operating loss of $1.0 million and Adjusted EBITDA of $2.8 million in the first quarter of 2019.
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